Omnicom Group advertising holding company Inc.
seemed optimistic about the future of generative artificial intelligence – which can be used to create new content, including text or images – as it reported fourth quarter results on Tuesday.
Omnicom Chief Executive John Wren has stated his views on the technology’s potential impact has evolved. “We will adopt it as quickly as possible,” he said, adding that it would help employees and benefit customers.
“Any automation we envision enhances the capabilities and facilitates the work of our best and brightest employees, and eliminates many otherwise mundane projects or activities,” Mr. Wren said on Tuesday’s earnings call. business. .
His comments were in response to an analyst’s question about how Microsoft’s technology Corp.
supported by OpenAI could affect Omnicom’s business and the advertising market as a whole. Microsoft integrates ChatGPT technology into its Bing search engine.
New York-based Omnicom owns agencies such as BBDO, DDB and TBWA.
The company posted organic revenue growth of 7.2% in the fourth quarter, beating analysts’ average estimate of 3.7% organic revenue growth, according to FactSet..
Organic revenue growth was 9.4% for the full year, the company said, beating analysts’ average estimate of 8.4%.
The company said it expects organic revenue growth this year of 3% to 5%.
Organic revenue growth is a measure that removes the effects of currency fluctuations, acquisitions and divestitures.
“We enter 2023 with a high level of confidence in our strategic and financial position while remaining cautious and preparing for possible changes in the geopolitical and macroeconomic environment,” Wren said on the call.
Competitor of Omnicom Publicis Groupe HER
last week, its organic revenue grew 9.4% in the fourth quarter as its data and technology services continued to pick up on a change in customer spending. The company said it has yet to see a major shift in customer behavior despite an uncertain macro backdrop.
Omnicom reported net income of $429.8 million, or $2.09 per share, for the three months ended Dec. 31, compared with net income of $416.2 million, or $1.95 per share, one year earlier. Total reported revenue for the fourth quarter of 2022 increased 0.3% to $3.87 billion from a year earlier.
The company said it helps customers navigate an increasingly complex media landscape, including the proliferation of advertising platforms from retailers and other companies. walmart,
for example, has developed technology that allows advertisers to use data collected from its customers to target advertisements to shoppers across the web.
“The greater the complexity, the more in demand our services are,” Phil Angelastro, executive vice president and chief financial officer, said on Omnicom’s earnings call.
Write to Megan Graham at megan.graham@wsj.com
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